Household spending is at its highest since 2010, according to the latest official figures, with more money being spent on housing than ever before.
The average UK household spending was £517.30 a week in 2013, according to the Office for National Statistics (ONS), up from an all time low of £501 the previous year and £508.90 in 2011.
People are spending more money than ever before on housing, including fuel and power, at £74.40 a week, the highest since the ONS’s current recording methods have been used, accounting for 14 per cent of all spending.
Transport also accounted for 14 per cent of spending, followed by recreation and culture at £63.90 (12 per cent), then food and non-alcoholic drink at £58.80 (11 per cent). However, we are spending less on restaurants and hotels, clothing and footwear and alcohol and tobacco.
Spending still remains below pre-crisis levels of 2006 when we were spending £539.80 a week and the largest expenditure was transport costs.
The rise in housing costs reflects the increasing number of renters in the market, with the majority of housing spend going on rent. In 2013 the proportion of households renting was 35 per cent, compared to 29 per cent in 2006. An increase in car purchases, which hit a six-year high in 2013, were credited with sending transport spending higher.
HOW WE SPEND IT
Chart notes: Figures are adjusted for inflation and shown at 2013 prices. Housing (net) excludes mortgage interest payments, council tax for GB households and domestic rates for Northern Ireland households.